Foreign Relations of the United States, 1952–1954, Germany and Austria, Volume VII, Part 2

741.13/10–152: Telegram

No. 823
The United States High Commissioner for Austria (Thompson) to the Department of State¹

secret

Vienna, October 1, 1952—8 p.m.

916. Eden’s three-day visit to Vienna last week² primarily gesture of support for Austria and return of Figl’s visit to UK this spring. However, British Embassy here has informed us Eden discussed following subjects in private conversations with Figl, Schaerf, Gruber and Kamits during his stay.

1. Occupation costs. Austrians stressed economic difficulties urging Eden find means reduce or eliminate these costs. When Eden stated present UK military and financial considerations gave little hope of substantial reduction, Gruber said he had been led to believe that if approached by both UK and France, US might be persuaded to increase aid these countries to enable payment their Austrian occupation expenses. Eden thought this scheme impractical.

2. Housing. Eden agreed to take up with Cabinet Austrian proposal for further construction of housing for British personnel here to release quarters now requisitioned.

3. Trieste. Austrians stressed their economic interest in early settlement which would provide economically and politically stable Trieste as much needed port for Danubian basin (to compete with Bremen and Hamburg) and questioned whether Italians not prone to develop Genoa to detriment Trieste. Eden agreed to keep Austrian economic interest in mind and said he thought it will be in Italian interest to assure viable Trieste. Eden expressed optimism that settlement might be worked out in light his recent conversations with De Gasperi in Strasbourg and Tito in Yugoslavia. However, he would not be drawn out on details saying he wished to discuss them with US first, and warned Austrians not to “rock the boat” meanwhile by inappropriate publicity discussion this question.

4. Austrian treaty. In response Eden’s opinion Soviets not yet ready to negotiate treaty settlement, Austrians pointed to recent evidence Soviet desire “normalize” economic relationships here and felt pressure of UN discussion Austrian question might lead them to negotiate although they probably would insist on returning to old draft. In answer to Austrian query, Eden suggested Iraq as possible Arab state to approach for support in UN if French agree.

5. Austrian representation in European organizations. Eden agreed it was not worth provoking Soviets by substitution full membership for present “Observer” relationship with Council of Europe but suggested Gruber might attend Committee of Ministers as observer. Austrians agreed and said they also consider appointing “observers” to Schuman Plan Organization similar to British arrangement.

6. Austrian debt settlement. Eden suggested time now ripe for negotiations on this question in view recent German debt settlement.³ Aust replied this possibility already under study.

7. Displaced persons. Austrians noted problem created by large number DP’s here and Eden offered support if concrete plan to rehabilitate even small number is presented to appropriate international agencies. Austrian noted World Bank had refused such assistance last year, but agreed to prepare specific proposals as suggested.

8. Austrian politics. Eden expressed hope forthcoming election battle would not be so severe as to threaten the coalition. Although stressing probability of all-out campaign, both party leaders agreed coalition absolutely necessary in Austria today.

Despatch covering details follows.⁴

Thompson

1. Repeated to London, Paris, Rome, and Belgrade.
2. Foreign Secretary Eden arrived in Vienna on Sept. 23 following a visit to Strasbourg for a meeting of the Council of Europe and a 6-day visit to Belgrade. Embassy officials in the United Kingdom first learned of Eden’s intention to visit Yugoslavia and Austria on Aug. 21. (Telegram 1020 from London, Aug. 21, 741.13/8–2152)
3. Concerning the various reports of the London Conference on German External Debts, issued on Aug. 8, announcing the terms of settlement for German prewar external debts, see Department of State Bulletin, Aug. 18, 1952, pp. 252–260.
4. Reference to despatch 647 from Vienna, Oct. 9, a seven-page report on Eden’s visit to Austria. (741.13/10–952)